Trade Deficit Rises 8% in September
The U.S. trade deficit increased 8% in September to a four-month high, the Commerce Department reported Nov. 14.
The gap between imports and exports increased to $41.8 billion from $38.7 billion in August.
The trade deficit was above economists’ forecast of $39 billion, Bloomberg News reported.
Limited progress in overseas markets has held back demand for U.S.- produced goods, indicating it will take time for the economy to get a larger boost from trade, Bloomberg reported.
“Over the next year, faster global growth and the potential for increased U.S. exports in energy products” will help narrow the deficit,” Tim Quinlan, an economist at Wells Fargo Securities told Bloomberg.
“I’d expect over the next three or four quarters or so the trade deficit to get smaller,” he said.
Exports declined 0.2% to $188.9 billion, after reaching a record $ 190.5 billion in June. Imports increased 1.6% to $230.7 billion.
The U.S had a record $30.5 billion deficit with China in September, according to Commerce.
“China is stabilizing, and looking ahead, we see fundamentals improving for stronger growth in 2014. However, heading into the fourth quarter, we have yet to see a clear uptick in holiday export demand,” Andres Liveris, CEO, Dow Chemical Co. said in an earlier conference call.
